The city of Holland will issue $160 million in bonds to build a new power plant. It’s the biggest bond offering the city, the public school district or the city’s publicly owned utility has ever issued.

Holland is home to a huge population of conservatives whose families emigrated from the Netherlands. That's why the city is known for its Tulip Time festival, historic windmill, wooden shoes, and as Holland Mayor Kurt Dykstra puts it, being frugal.

The City of Holland plans to build a new $182 million power plant. Wednesday night Holland City Council voted eight to one to replace the city’s more than 70-year-old coal plant with a brand new one that burns natural gas instead.

“I don’t know about you but I’ve made some bad decisions in my life and I’ve made them probably because I acted too quickly,” City Councilman Wayne Klomparens said before casting the lone “no” vote.

Holland’s city owned utility would be better off if it burned natural gas rather than coal in the future. That’s the conclusion of a months-long study released this week.

The city hired an energy consultant firm to figure out which of its many energy options would produce the best return on investment. The firm said natural gas would be the best bang for the buck. The report says that return also considers other factors like the environment.

The City of Holland is backing out of plans for a potential wind farm. The city-owned utility bought the option to lease hundreds of acres in Allegan County after the state identified the area as one of the best in Michigan for wind energy potential.

But after more than a year of serious study, the city doesn’t think there’s enough potential to build the wind farm.

“When we went into this, everything looked like it was going to be a good project to pursue,” said Dan Nally, who directs business services for Holland’s Board of Public Works.

"We shouldn’t take the fact that this project doesn’t go forward that we are not supporting renewable, because we absolutely, positively are. But we will also, at the same time, get the best value that we can,” Nally said.

The wind was good, but not as strong as they had hoped. The plan was to have a 20 mega-watt wind farm-- relatively small compared to large scale commercial projects.

Nally says the utility has spent roughly $678,000 to collect wind data and study the impact on birds, bats and wetlands.

"We don’t feel that any of this money has been wasted. It’s been an investment in understanding what we could and could not do,” Nally said.

Nally says Holland is working on agreements to purchase renewable power from other wind farms, but he declined to give details until any agreement is negotiated.

Holland and all other utilities in Michigan must have 10 percent of their energy come from renewable sources like wind by 2015. Nally says Holland is still on track to meet that requirement.

People rallied in Holland today to ask officials not to expand the city-owned coal-fired power plant.

Holland took the state to court get an air quality permit that would allow it to replace a more than 60-year-old boiler with a more efficient one. City officials haven’t decided if they will replace it yet or not.

Tia Lebherz is with the Sierra Club in Holland. She and about twenty others held protest signs outside the Holland farmer’s market demanding the city move “beyond coal”.

The legal battle over a proposed expansion of a coal-fired power plant in Holland is not over yet. The State of Michigan granted the city the necessary air quality permit in February, following years of delays. But now a number of environmental groups are teaming up and bringing the issue back to court.

The state denied air quality permits last year for two coal plants, one in Holland and one in Rogers City. The decision was based on an executive order issued by former Governor Jennifer Granholm. She said the state must factor in whether or not a community really needs more power and consider conservation efforts and alternative energy.

Brad Wurfel is a spokesman with MDEQ. He says their decision to change course is partly because of two judges ruling against the state and partly because of the new administration.

“Governor Snyder is in favor of building Michigan’s economy and in the case of Wolverine Rogers City has expressed an interest in additional power to realize a long term vision for increasing its port capacity, expanding its infrastructure, and they need power to do it. Right now they’re buying that power from Ohio and Indiana.”

Wurfel says it’s not an issue of whether or not the new governor is for or against coal plants.

“Our job at the department of environmental quality is to see to it that the permits that are issued to them are in compliance with state and federal clean air statues.”

Wurfel says the state is working with Wolverine Power on their plans to build a new plant in Rogers City, and the City of Holland to expand an existing plant. He says they will still have to meet air quality standards to get the permits they need.